Consumer spending fueling growth

Economics may be called the dismal science but here is a report that is anything but dismal.

The economics unit at ScotiaBank has updated their outlook for the country, the world and the provinces. And they do not see a recession in their crystal ball. In fact, they are projecting continued economic growth for the remainder of this year and all of 2023.

They also see Saskatchewan as the national leader among the provinces with growth of 6% this year followed by a further 2% expansion next year. Employment levels will remain strong and this will be the best year in five for housing starts.

But the key driver supporting all this expansion nationally is consumer spending. They say we saved a lot of money during the pandemic and we’re spending it. Restaurant sales and travel expenditures, discretionary purchases that are usually the first to go when we tighten our belts, are still rising. And, even with falling consumer confidence levels, we are still spending….spending enough to prop up the economy and keep us in the black.